Key facts
- The securitization issued $297.5 million in senior Class A notes rated A(low)(sf).
- Mezzanine Class B notes totaled $50 million and were rated BBB(low)(sf).
- Subordinate Class C notes amounted to $58.5 million and were rated BB(low)(sf).
- Morningstar DBRS assigned the ratings to the notes.
Unlock Technologies announced on Monday the closing of a $433.1 million securitization backed by home equity agreements (HEAs), its eighth rated securitization. The transaction, Unlock HEA Trust 2026-2, includes 4,474 HEAs and was issued and sponsored by D2 Asset Management. Homeowners receive upfront cash for a share of their home's future value with no monthly payments. Unlock CEO Jim Riccitelli stated that HEAs are becoming mainstream choices alongside HELOCs and home equity loans, driven by rising expenses. The securitization included $297.5 million in senior Class A notes rated A(low)(sf), $50 million in mezzanine Class B notes rated BBB(low)(sf), and $58.5 million in subordinate Class C notes rated BB(low)(sf), with ratings assigned by Morningstar DBRS. The deal saw significant repeat participation from existing investors.